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Indian State Oil, Power Firms to Form Offshore Wind JV

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Indian State Oil, Power Firms to Form Offshore Wind JV

Indian State Oil, Power Firms to Form Offshore Wind JV

This article was first published on Rigzone here

Oil and Natural Gas Corp. Ltd. (ONGC) and the green arm of power utility NTPC Ltd. signed an agreement to form a joint venture focused on the development of offshore wind generation projects in India, ONGC has said.

“The JVA [joint venture agreement] marks a pivotal collaboration aimed at spearheading Renewable Energy Projects both within India and on the international stage”, majority-government-owned ONGC said in a recent news release.

“Specifically, the agreement encompasses ventures in offshore wind projects while also delving into potential opportunities in Storage, E-mobility, Carbon Credits, Green Credits, Green Hydrogen business, and its derivatives such as Green Ammonia and Green Methanol”, said the announcement on the ONGC website.

NTPC Green Energy Ltd. (NGEL), a wholly-owned subsidiary of primarily state-owned electricity distributor NTPC, and ONGC indicated intent for the collaboration in a memorandum of understanding inked September 27. ONGC and NGEL moved forward with the signing of the JV pact at the India Energy Week gathering scheduled for February 6–9, 2024.

India does not yet have any operational offshore wind facility, based on information on the website of the Ministry of New and Renewable Energy (MNRE). A 200-megawatt (MW) project by Danish company COWI A/S is planned to rise near the coast of Gujarat state as India’s first offshore wind farm, according to information on the website.

India in 2018 declared a goal of adding 30 gigawatts (GW) of offshore wind capacity by 2030. The target is contained in the MNRE’s yearend review published December 10, 2018.

More broadly India has set an aim of 500 GW in “non-fossil energy capacity” by the end of the decade, as declared by Prime Minister Narendra Modi at COP26 in Glasgow 2021. “India will meet 50 percent of its energy requirements from renewable energy by 2030”, the premier told the 26th gathering of the Conference of the Parties (COP), the supreme decision-making body of the United Nations Framework Convention on Climate Change, according to a transcript by the Prime Minister’s Office published November 1, 2021.

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The government later set a goal of adding 50 GW of renewable capacity from the financial years 2023–28. “These annual bids of ISTS (Inter-State Transmission) connected renewable energy capacity will also include setting up of wind power capacity of at least 10 GW per annum”, the MNRE said in a statement April 5, 2023, announcing the near-term targets toward 500 GW of non-fossil fuel capacity by 2030. That announcement said the end-of-the-decade target consists of renewables and nuclear.

Besides the government offshore wind JV between NTPC and ONGC, a private JV for wind and solar had been launched earlier between TotalEnergies SE and the renewables arm of Indian diversified conglomerate Adani Group through an agreement jointly announced September 20, 2023. The JV had a planned capacity of 1,050 MW, all from AGEL assets.

“The JV houses the 1,050 MW portfolio comprising a mix of already operational (300 MW), under construction (500 MW) & under development assets (250 MW) with a blend of both solar & wind power projects in India”, AGEL said in a statement December 27, 2023, announcing the completion of the JV formation process.

“As part of the JV, TotalEnergies invested USD 300 million in AGEL subsidiary, for acquiring 50 percent stake in the projects”, the December statement said

“With this transaction, TotalEnergies has reinforced its strategic alliance with AGEL and support in enabling AGEL’s target of 45 GW capacity by 2030”, it added.

To contact the author, email jov.onsat@rigzone.com

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